- DXY breaks below the 90.00 level to new multi-day lows.
- Immediate contention emerges at the 89.50 region.
DXY extends Monday’s pessimism and breaches the key support at the 90.00 yardstick.
Last week’s rebound to the vicinity of 90.50 lacked follow through and sparked a subsequent correction to the current sub-90.00 area. If bulls fail to regain the 90.50 area in the near-term, then DXY could be exposed to a deeper retracement to, initially, last week’s lows in the mid-89.00s.
If the selling impulse gathers further steam, then the YTD low at 89.20 (January 6) is expected to emerge on the horizon.
In the meantime, and looking at the broader scenario, while below the 200-day SMA, today at 91.66 the outlook for the buck is forecast to remain negative.
DXY daily chart
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